Bloomberg has launched a solution designed to provide investors with a comprehensive assessment of nature-related impacts and dependencies across a company’s value chain for up to 45,000 companies.
The new product aims to equip investors with the necessary tools to evaluate the financial materiality of nature and biodiversity within corporate operations. This launch comes at a critical time when almost $1 trillion of annual financing is required by 2030 to manage biodiversity sustainably and maintain ecosystem integrity.
Bloomberg is renowned for its robust data and analytic solutions, primarily servicing the financial markets. Their offerings are crucial for investors needing reliable and precise financial data to make informed decisions.
The newly introduced solution offers detailed analytics on nature-related risks, integrating data from Bloomberg’s extensive databases with biodiversity indicators from the Natural History Museum’s Biodiversity Intactness Index (BII). It also includes assessments on water stress, deforestation risks, and insights into corporate actions towards reducing nature loss.
This offering will be available on the Bloomberg Terminal and via Data License. It leverages a combination of company revenue segmentation, supply chain, and asset location data with nature and biodiversity-related geospatial data. Key insights include company revenue percentages in high-risk nature sectors, involvement in deforestation-linked commodities, and exposure to water-stressed regions.
Additional features of this product include alignment with the Taskforce on Nature-related Financial Disclosures’ recommendations, enabling investors to make nature-aware investment choices and align their reporting with global standards on nature risk disclosure.
Nature Solutions Product Manager at Bloomberg, Christian O’Dwyer said, “The dependency of societies and economies on nature is widely recognized, but evaluating the nature-related risks of companies is complex and can not be reduced to a single metric.
“With Bloomberg’s new offering, users get a comprehensive assessment of all aspects of a company’s dependency and impact on nature, which can be integrated into decision-making through both Bloomberg Terminal and Enterprise Data Solutions. By collaborating with the Natural History Museum, we’re able to provide science-based biodiversity metrics that better reflect the broader ecological context in areas where companies operate than other indicators.”
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